I will have office hours from 4pm to 6pm on Monday and Wednesday; however, please try tomake an appointment to assure that I am there. I have a very open door policy. You can call meany time and I will help you then or set-up a time. Please use my home number in the evenings.You can call me at home until 10:00 pm and that includes weekends. You can leave me amessage at home as well; however, I am far better about checking my office and cell phone voicemail. Please feel

free to use email to contact me. I will always respond to email promptly M-F,however, on the weekends I often

do not check messages so

call me at home or on my cell phone.

Course Objectives and Structure

The course is designed to give you a perspective

of financial management from the point of viewof a corporate financial executive and an investment or commercial banker. The goal is to exposeyou to the topics that are part of a Fortune 1000 CFOs daily life. The class will be a combinationof financial analysis and review of specific financial management topics combined with the casemethod. In addition to analyzing the specific financial issues and decisions, this class willconsider how those issues relate to the strategic objectives of the firm.The overall impact will gofar beyond the financial aspects of the company to consider the strategic and operational impactsas well.

When you finish this class you will be able to perform and interpret the analysis required forfinancial and strategic management. I will approach the material from a very practical approachand teach you how to do the analysis in a real world setting. Typically I will discuss a topic andassign readings on that topic followed the next class by cases on what we learned the

previousweek.

It will be rigorous and you must come to class prepared. You must read the assigned readingsand prepare the cases before class. If you do not understand a reading, contact me or at aminimum in class be very forthright with what was confusing so you are prepared to participate inlively discussion each class. The reading and the overview of each topic should help you toprepare the case.

Corporate Governance and Investor Relation in the “new” Business world–

“Managing

Wall Street”

Required Text

The Principles of Corporate Finance, 7th

edition,

Brealey and Myers–

If you have an older editionof this books it is fine; do not purchase the current edition. It will be used as a reference guide,however I do believe it is

imperative that you have a copy of at least an older edition if not thecurrent one.

Reading Packet–

In the Copy Center at U of H. This packet will be fairly expensive because ithas a lot of excerpts from different text books and cases.

Cases will be available through the Harvard Business School Press Website (link andinstructions are on the WebCt site)

Prerequisite Experience

You will utilize your previous class and work experience in this class frequently. I will reviewthe fundamentals withyou, however, please be sure you have the following classes/skills or youwill find this class overwhelming. Proficiency in Excel; we will be utilizing it frequently in thisclass. Corporate Finance (comfortable performing Discounted Cash Flow “DCF” analysis and anunderstanding of Weighted Average Cost of Capital “WACC”), Investments, FinancialAccounting (comfortable with the interrelationship of the income statement, balance sheet andstatement of cash flows, comfortable reading and interpreting the notes of the financialstatements). It would be helpful if you have had some financial statement analysis experiencethrough a class focused on financial statement analysis or have at least touched upon it inCorporate Finance or Investments.

If you do not feel your skill set meets these requirements please see me to determine if you willbe successful in this class or if you need further course work before taking. I will be teaching thisclass again in theFall

Semester

and possibly the Summer.

Grading

Final Case:

40%

Class Participation

–

Including group Chrysler case:

30%

Case Write-ups:

30%

Final

A final case will be handed out prior to the last class. You will have one week to independentlyprepare the final case utilizing the materials you have received throughout the semester. The casewill be handed in at the beginning of the last class and we will discuss the final case after it hasbeen handed in. Please bring 2 copies of your final to class, one to hand in and one to retainfordiscussion during the class.

Class Participation

You must come to class prepared and you must participate. Much of this class will be based ondiscussion. I will randomly call on people and ask questions and I will also solicit voluntaryanswers. This type of class can only be successful with participation. I am not going to lecturefor three hours each class. I am going to encourage discussion that will help you learn from eachother. Many of you have been out in the workforce and have interesting insights. In many casesthere will be no right or wrong answers to these cases (not true all the time), discussion will helpto demonstrate that.

IF YOU WILL NOT BE IN CLASS EMAIL ME OR CALL ME TO TELL ME WHY. Behonest; I worked 60+ hours per week while working toward my MBA, so I understand if youwere told at the last minute that you can not leave the office because of something within yourcompany that just occurred.

Case Write-ups:

Throughout the semester there will be case write-ups due. Theywill often require financialanalysis. The questions will be handed out ahead of time and posted on my website. They arenot included in the case packet you have purchased. You must hand them in before class andretain an additional copy for yourself to

help you with the discussion.

Case write-ups should beno longer that three pages of text and should also include any additional financial analysis youwould like to attach.

You can do the case write-ups in groups of 1, 2 or 3. No more than 3. I encourage you to form agroup to discuss all cases before class to help you prepare. However, I am not requiring itbecause I know many of you work and commute. I encourage group conference calls as a workaround, but again if you want to do case assignmentsand preparations individually it is yourdecision. Once you have formed a group, I prefer you remain in that group. If there areextenuating circumstances please inform me.

Note last semester my students who formed groupsand learned from each otherduring the semesterperformed better on the individual final case.

If you cannot attend class, your paper must be emailed to me prior to the beginning of class.

Schedule

Date

Readings and Cases

Topics and Write-Ups

January 20



How to do a case study



Introduction



How do to a case



Valuation Approaches

(noteson class website)

January

27

Readings:



Chapter section 4.5 (p. 75-80) in Brealey andMyers



Chapter 9 (p. 220-252) in Brealey and Myers“A



Chapter 19 (523-550)



Berkshire HathawayLetter to Shareholders, 2001-

2003

(on class website)

–

Read after the case



Warren Buffet–

GEICO



Valuation Approaches

Continued

(notes on classwebsite)

Case write-up:



Warren Buffet–

GEICO

February 3

Readings:



“The EVA Financial Management System” inChew



Chapter 10

(skim p.254-283)



Chapter 19 (p. 522-559) in Brealey and Myers



“Using APV: A Better Tool for ValuingOperations” in Packet



The Battle for Value: Federal Express Corporationvs. United Parcel Service of America Inc.



Valuation, EVA, APV andWACC

Case write-up:



FedEx vs. UPS

February 12

Readings:



Chapter 29 (p. 816-848) in Brealey and Myers



Chapter 30 (p. 850-878) in Brealey and Myers



Coke vs. Pepsi, 2001



Valuation, EVA, APV andWACC

Case write-up:



Coke vs. Pepsi, 2001

February 10



Butler Lumber



Euroland Foods

Readings:



“Signaling with Dividends

Stock

Repurchase, andEquity Issues” in packet



“Who

Wins in Large Stock Buybacks” in Chew



“The Dividend Cut Heard ‘Round the World” inChew



“The Relative Signaling Power of Dutch AuctionandFixed-Price Tender Offers and Open MarketShare Repurchases”